Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
The POSTs (front webpages) are mainly 'cuttings' from reliable sources, updated continuously.
The PAGEs (see Tabs, above) attempt to make the information more meaningful by putting some structure to the information we have researched and assembled since 2006.
China is facing mounting criticism over a planned security law for Hong Kong which would make it a crime to undermine Beijing’s authority in the territory.
The UK and US said at a private session of the UN Security Council that the law would curtail the city’s freedoms.
China, which blocked a formal meeting, warned them to “stop interfering”.
Hong Kong’s autonomy is guaranteed by the 1997 agreement under which it was returned to China from the UK.
It enjoys some freedoms – of the press and association – unseen in mainland China.
But there are fears the proposed law – which has sparked a wave of anti-mainland protests – could end Hong Kong’s unique status.
There are 350,000 BNO passport holders in Hong Kong who currently have the right to visit the UK for up to six months without a visa.
On Friday, the UK Home Office confirmed the new rights could be given to up to three million people with BNO status – as long as they applied for and were granted a passport.
China says all BNO passport holders are Chinese nationals, and if the UK changes this practice, it would violate international law.
Australia, Canada and the EU have also criticised the security law and its implications for Hong Kong.
Taiwan’s parliament has backed a plan to offer sanctuary to people who want to flee Hong Kong, but China – which considers Taiwan to be part of its own territory – has warned the island not to get involved.
On Friday, Chinese Foreign Ministry spokesperson Zhao Lijian urged other countries to stop interfering in the matter.
“We will take necessary measures to resolutely counter the wrong acts of external forces interfering in Hong Kong affairs”, he said.
What might the US do?
On Wednesday, US Secretary of State Mike Pompeo told Congress that Hong Kong no longer merited special treatment under US law, potentially paving the way for it to be stripped of trading privileges such as lower tariffs than mainland China.
He is expected to make an announcement later on Friday.
The EU has warned that imposing sanctions would not solve the crisis.
“Our relationship with China is based on mutual respect and trust… but this decision calls this into question and I think that we have to raise the issue in our continued dialogue with China”, EU High Representative for Foreign Affairs Josep Borrell said after talks with foreign ministers on Friday.
Media caption Police arrested dozens of people in Causeway Bay on Wednesday
Hong Kong’s justice secretary Teresa Cheng told the BBC’s Chinese service that any threat of sanctions was unacceptable.
“Are the sanctions being imposed with a view to coerce another state to change their policy…? Any such sanctions are not going to benefit anyone”.
China’s parliament has backed the security legislation, which would make it a crime to undermine Beijing’s authority in Hong Kong.
The resolution – which now passes to China’s senior leadership – could also see China installing its own security agencies in the region for the first time.
Full details about exactly what behaviour will be outlawed under the new security law are not yet clear. It is due to be enacted before September.
Image copyright AFPImage caption President Xi Jinping and other senior figures applauded when the security law was passed
However, it is expected to criminalise:
secession – breaking away from China
subversion – undermining the power or authority of the central government
terrorism – using violence or intimidation against people
activities by foreign forces that interfere in Hong Kong
Experts say they fear the law could see people punished for criticising Beijing – as happens in mainland China. For example, Nobel Laureate Liu Xiaobo was jailed for 11 years for subversion after he co-authored a document calling for political reform.
China’s foreign ministry in Hong Kong described US criticism of the new draft law as “utterly imperious, unreasonable and shameless”.
Image copyright GETTY IMAGESImage caption Around 300,000 in Hong Kong hold a British National (Overseas) passport
The UK has said it is considering more rights for holders of a special passport issued to some people in Hong Kong.
The territory, which used to be a British colony, was handed back to China in 1997. Anyone born before then is eligible to apply for a British National (Overseas) passport, known as a BNO.
If China implements a controversial proposed security law, people holding the BNO, could get a “path to citizenship”, the UK said.
What is the BNO and who has one?
The BNO passport is essentially a travel document that does not carry citizenship rights with it – although you are entitled to some consular assistance outside of Hong Kong and China with it.
It was issued to people in Hong Kong by the UK before Hong Kong was handed over to China.
Around 300,000 people currently hold a BNO passport, allowing them to visit the UK visa-free for six months. An estimated 2.9 million people are eligible for a BNO passport, said the British Consulate General in Hong Kong.
Though it gives the passport holder the right to remain in the UK for up to six months, it doesn’t automatically allow them to reside or work there. They also aren’t allowed to access public funds, including things like government benefits.
BNO holders cannot pass this status on to their children.
What is the UK proposing – and why?
China on Thursday formally approved a plan to impose controversial national security legislation in Hong Kong. It could go into effect as early as the end of June.
Hong Kong was handed back to China, on a number of conditions. These include the region’s high level of autonomy and maintaining certain rights like freedom of speech that do not exist in mainland China.
But this new plan, if put into law, would make it a crime to undermine Beijing’s authority in Hong Kong, and many are concerned it could end Hong Kong’s unique status.
The move triggered a wave of criticism around the world, with many – including Chris Patten, the last governor of Hong Kong – urging the UK to stand up for the territory.
Image caption Under current rules, BNO holders are allowed to stay for six months
Later on Thursday, UK Foreign Secretary Dominic Raab said the country would move to scrap the six-month stay limit for BNO holders if China goes on to officially implement the law.
Mr Raab said that BNO passport holders would be allowed to “apply to work and study for extendable periods of 12 months and that will itself provide a pathway to future citizenship”.
What difference could it make?
As a way to help people in Hong Kong who would rather not stay there if the new security laws are implemented, it might prove more symbolic.
For starters only a small percentage of people in Hong Kong currently have a BNO.
But also, the people who the security laws are aimed at – the young anti-mainland protesters who have been getting into violent confrontations with police for months – are not likely to be eligible for the BNO because of their age.
Additionally, though the BNO gives the passport holder the right to visit the UK for up to a year potentially, it’s not clear what other benefits the extension might bring, or if the UK would make it any easier administratively for those already in the country to apply for work or study.
On social media, some Hong Kongers dismissed it as a gesture that amounted to little more than a 12-month tourist visa.
Effectively, it means that those who come to stay in the UK for a year, and who have the funds to be able to extend this enough, could eventually be eligible to apply for citizenship.
It cuts out some of the administrative hoops BNO holders would have had to jump through before this move if they wanted this path.
How has China reacted?
China has firmly opposed the move by the UK, saying it is a violation of the handover agreement that stipulates BNO passport holders do not enjoy UK residency.
China has repeatedly warned Britain to stay out of its affairs in Hong Kong.
The Chinese ambassador to the UK Liu Xiaoming had previously accused some British politicians of viewing Hong Kong “as part of the British empire”.
LONDON (Reuters) – China has betrayed the people of Hong Kong so the West should stop kowtowing to Beijing for an illusory great pot of gold, said Chris Patten, the last governor of the former British colony.
Beijing is set to impose new national security legislation on Hong Kong after a sustained campaign of pro-democracy protests last year in the city, which enjoys many freedoms not allowed on mainland China.
“The Hong Kong people have been betrayed by China,” Patten was quoted as saying by The Times newspaper. Britain has a “moral, economic and legal” duty to stand up for Hong Kong, he said.
Patten watched as the British flag was lowered over Hong Kong when the colony was handed back to China in 1997 after more than 150 years of British rule.
Hong Kong’s autonomy was guaranteed under the “one country, two systems” agreement principle enshrined in the 1984 Sino-British Joint Declaration signed by then Chinese Premier Zhao Ziyang and British Prime Minister Margaret Thatcher.
But China’s plans to impose national security laws on Hong Kong risk destroying the Declaration, Patten said. The United States has branded the laws a “death knell” for the city’s autonomy.
“What we are seeing is a new Chinese dictatorship,” Patten said. “The British government should make it clear that what we are seeing is a complete destruction of the Joint Declaration.”
Hong Kong leader Carrie Lam said her government will “fully cooperate” with the Chinese parliament to safeguard national security, which she said would not affect rights, freedoms or judicial independence.
Patten said the West should stop chasing the illusory promise of Chinese gold.
“We should stop being fooled that somehow at the end of the all the kowtowing there’s this great pot of gold waiting for us. It’s always been an illusion,” Patten said.
“We keep on kidding ourselves that unless we do everything that China wants we will somehow miss out on great trading opportunities. It’s drivel.”
The British government did not immediately comment on Saturday.
Prime Minister Boris Johnson’s spokesman said on Friday the government was monitoring the situation and as a party to the Joint Declaration the UK was committed to the upholding Hong Kong’s autonomy and respecting the one country, two systems model.
Image copyright AFP / GETTYImage caption Shoppers walking past a broadcast of Chinese Premier Li Keqiang delivering his speech at the opening of the NPC on Thursday
China’s ruling Communist Party has set in motion a controversial national security law for Hong Kong, a move seen as a major blow to the city’s freedoms.
The law to ban “treason, secession, sedition and subversion” could bypass Hong Kong’s lawmakers.
Critics say China is breaking its promise to allow Hong Kong freedoms not seen elsewhere in China.
It is likely to fuel public anger and may even trigger fresh protests and demands for democratic reform.
The plan was submitted at the annual National People’s Congress (NPC), which largely rubber-stamps decisions already taken by the Communist leadership, but is still the most important political event of the year.
Hong Kong, a semi-autonomous region and an economic powerhouse, was always meant to have introduced such laws after the handover from British control to Chinese rule in 1997.
After last year’s wave of sustained and violent protest, Beijing is now attempting to push them through, arguing “law-based and forceful measures” must be taken to “prevent, stop and punish” such protests in the future.
On Friday, Hong Kong’s government said it would co-operate with Beijing to enact the law, adding it would not affect the city’s freedoms.
That article says Hong Kong “must improve” national security, before adding: “When needed, relevant national security organs of the Central People’s Government will set up agencies in Hong Kong to fulfil relevant duties to safeguard national security in accordance with the law.”
China could essentially place this law into Annex III of the Basic Law, which covers national laws that must be implemented in Hong Kong – either by legislation, or decree.
Addressing the congress, Premier Li Keqiang spoke of the economic impact of the coronavirus and on Hong Kong and Macau said: “We’ll establish sound legal systems and enforcement mechanisms for safeguarding national security in the two Special Administrative Regions.”
What do opponents say the dangers are?
Hong Kong is what is known as a “special administrative region” of China.
It has observed a “one country, two systems” policy since Britain returned sovereignty in 1997, which has allowed it certain freedoms the rest of China does not have.
Pro-democracy activists fear that China pushing through the law could mean “the end of Hong Kong” – that is, the effective end of its autonomy and these freedoms.
Last year’s mass protests in Hong Kong were sparked by a bill that would have allowed extraditions to mainland China.
Media caption Former Hong Kong governor Chris Patten: “UK should tell China this is outrageous”
The bill was paused, then withdrawn – but the protests continued until the virus outbreak at the end of the year.
The US has also weighed in, with President Trump saying the US would react strongly if it went through – without giving details.
It is currently considering whether to extend Hong Kong’s preferential trading and investment privileges.
Why is China doing this?
Mr Wang said the security risks had become “increasingly notable” – a reference to last year’s protests.
“Considering Hong Kong’s situation at present, efforts must be made at the state-level to establish and improve the legal system and enforcement mechanisms,” he is quoted as saying in state media.
Media caption The BBC’s Helier Cheung on Hong Kong’s 2019 protests
Beijing may also fear September’s elections to Hong Kong’s legislature.
If last year’s success for pro-democracy parties in district elections is repeated, government bills could potentially be blocked.
What is Hong Kong’s legal situation?
Hong Kong was under British control for more than 150 years up to 1997.
The British and Chinese governments signed a treaty – the Sino-British Joint Declaration – that agreed Hong Kong would have “a high degree of autonomy, except in foreign and defence affairs”, for 50 years.
This was enshrined in the Basic Law, which runs out in 2047.
Young people starting out in the jobs market face a hit to their prospects that could endure years after the Covid-19-induced downturn has run its course
A generation of angry youth raises the spectre of political instability
Freelance filmmaker Anita Reza Zein had grown used to jam-packed production schedules requiring her to put in long hours and run on little sleep. Until Covid-19 struck.
Today, the talented Indonesian is suddenly free. With five projects on hold and many more potentially cancelled, she now spends her time working on a personal project, doing research for her work and occasionally going for a ride on a bicycle.
“I feel calm and patient although I’m jobless. Maybe because it’s still the third week [of social distancing] and I still have enough savings from my previous work,” said the 26-year-old, who is from Yogyakarta. “But I imagine life will become tougher in the next few months if the situation gets worse.”
Like her, millions of youths are now part of a job market in Southeast Asia that has been ravaged by the coronavirus pandemic. They are the unlucky cohort of 2020 whose fortunes have changed so drastically, so quickly.
Freelance filmmaker Anita Reza Zein now spends most of her time at home as her projects have all been frozen due to the spread of Covid-19. Photo: Anita Reza Zein
Just three months ago, many eager graduates were about to partake in a strong economy and possibly land decent pay cheques.
Today, job offers are being withdrawn and hiring halted, leading to a spike in regional youth unemployment in the short term. In the long term, the effects on the Covid-19 cohort could lead to wider social and political problems.
JOB MARKETS SHUT
The virus’ impact on economies and the job market in the region has been swift and devastating. Borders have been slammed shut, workers ordered to stay at home, and thousands of companies closed every week.
The biggest problem is the lack of certainty about how long this will last – the longer the governments keep their countries on lockdown, the worse the economic impact.
In Indonesia, for example, the virus has caused almost 2.8 million people to lose their jobs, according to the Manpower Ministry and the Workers Social Security Agency. Likewise, in Malaysia, an estimated 2.4 million people are expected to lose their jobs, going by data from the Malaysian Institute of Economic Research (MIER).
is bracing itself for a 5.3 per cent contraction in GDP for the full year, the worst since the Asian financial crisis in 1997.
“We think about seven million jobs have been lost already, and the figure will hit 10 million if the outbreak drags on for two to three more months,” said Kalin Sarasin, council member and head of the Thai Chamber of Commerce.
Lockdown for 34 million people in capital Jakarta as Indonesia fights surge in coronavirus deaths
For young jobseekers, the outbreak of the Covid-19 pandemic could hurt even more, with companies unwilling to open up new jobs for them.
“My clients who were open to fresh graduates previously have realigned searches [for candidates] who have at least one year of experience, as it’s a lot faster for someone with experience to scale up quickly and contribute,” said Joanne Pek, a recruiter at Cornerstone Global Partners’ Singapore office.
For many small and medium-sized enterprises (SMEs) such as Singapore-based restaurant chain The Soup Spoon, saving jobs – rather than recruiting – is the priority.
“We don’t want to let anyone go during this period, so we’re focused on protecting jobs,” said co-founder and director Benedict Leow, who employs some 250 workers.
THE COVID-19 COHORT
The looming economic downturn could have distinct consequences for the Class of 2020 that will outlast the economic downturn itself.
For one thing, the paucity of jobs could result in the Covid-19 cohort becoming a “lost generation” of sorts, said Achim Schmillen, a senior economist at the World Bank Social Protection and Jobs Global Practice.
“Research from around the globe shows that graduating in a recession can have significant and long-lasting impacts that can affect the entire career. In particular, it can lead to large initial earnings losses which only slowly recede over time,” he said.
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Economics professor Jeff Borland of the University of Melbourne said that international studies showed that what happened to people when they first entered the labour market would affect them for the rest of their working lives.
“Many international studies have shown that trying to move into employment during a major economic downturn cuts the probability of employment and future earnings for a decade or more.
“Why this occurs is less well-established. Reasons suggested include being forced to take lower-quality jobs, losing skills and losing psychological well-being,” he said in a piece published on The Conversation website.
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This could create “lasting scarring” on the graduates this year, said labour economist Walter Theseira.
“If their careers start badly, it would affect their earnings for a number of years because they would lack the same experience as peers who started in a more secure position,” the associate professor of economics at Singapore University of Social Sciences said.
Shrinking salaries and the downsizing of companies mean that graduates might have to seek out professions outside their areas of study to survive, said Grace Lee Hooi Yean, head of the Economics Department at Monash University, Malaysia.
She said youth unemployment in the country, which stands at 11.67 per cent, could rise sharply.
“This looming crisis could trap a generation of educated and capable youth in a limbo of unmet expectations and lasting vulnerability if the graduates are not ready to face reality and adapt to the new challenges,” she said.
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This is fast becoming the reality for final-year medical student Rebecca K. Somasundaram, who has been left without a job due to the pandemic.
After being offered a residency programme at a top specialist hospital in Kuala Lumpur, she was notified a month ago that her placement had been made void until further notice. This has thrown the 24-year-old’s plans into disarray as she was hoping to enter the workforce soon to pay off her student debts. Her plans to get married next year have also been put on hold temporarily.
“I am in constant talks with the hospital to see if there is any way I can join them soon but seeing how things are unfolding so quickly, I am slowly losing hope,” she said.
Over in Indonesia, the pandemic will trigger job losses on a national scale. To combat this, the government would need to introduce strong fiscal measures and beef up its social protection policies, said the country’s former minister of finance Muhamad Chatib Basri.
Many people on lower incomes tend to work in the extraction industry, such as mining and palm oil, and these are the first industries hit due to the global slowdown.
“The rich will be able to brave the storm, but the poor have no means to do so,” he said.
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SPECTRE OF 1997
With partial lockdowns imposed in the capital of Jakarta, more needs to be done to ensure that vulnerable citizens have access to food and financial support.
Without government intervention, economic woes could soon translate into political instability, a scenario last seen in the Asian financial crisis.
In 1997, waves of discontent sparked racial riots in Indonesia that toppled the country’s long-time strongman Suharto, while in Thailand a political crisis created the conditions for populist leader Thaksin Shinawatra to rise.
Rising discontent could have serious implications at the ballot boxes, warned Basri, who said young voters were a key voting bloc for President Joko “Jokowi” Widodo.
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In last year’s general elections, Jokowi proved a hit among the lower-educated youth who had benefited from the creation of largely unskilled jobs during his tenure.
“With more young people expected to become unemployed in the coming months, things will only get worse from here,” said Basri, who added that the country’s youth unemployment stood at almost 20 per cent in 2018.
Indonesia, which has 268 million people and is Southeast Asia’s largest economy, had 133 million workers as of last August, according to official data.
Close to 10 per cent or about 12.27 million are university graduates but among this group, about 5.67 per cent or some 730,000 were unemployed. This was higher than the country’s overall unemployment rate at that time, which was 5.28 per cent.
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GETTING IT RIGHT
Economists say, however, that all is not lost. Much will depend on policy and how governments focus on battling the virus on the public health and economic fronts. They point to Singapore, which has launched a robust response to the crisis.
On April 6, the Singapore government announced its third budget in two months to help companies and households tide over the crisis. In all, Singapore’s total stimulus package, which aims to save jobs and keep funds flowing to companies, will cost the government a massive S$59.9 billion (US$42 billion).
The Singapore government was also preparing for a labour market that would be reluctant to hire fresh graduates on a full-time basis, said Theseira.
“There are plans to implement large-scale subsidised traineeships, which may be more palatable to companies which are worried about taking on permanent headcount this year,” he noted. “As the economic situation improves, they can be converted to permanent positions.”
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While jobs were being created for fresh graduates, many would still have to temper their expectations, such as taking jobs with lower starting pay, said DBS Bank economist Irvin Seah.
“There are still some jobs to go around. There are still some companies that may need workers. But they will need to be realistic,” he said.
For instance, despite the downturn, Singapore telco Singtel expects to recruit over 300 fresh graduates for various permanent positions this year, according to Aileen Tan, the company’s Group Chief Human Resources Officer. Many of the new hires will be in new growth areas such as the Internet of Things, analytics and cloud.
The Singtel Comcentre building in Singapore. Photo: Roy Issa
Other companies that continue to hire include those in tech across the region, including e-commerce giant Shopee, food-delivery service Foodpanda and Amazon.
In Australia, Borland suggested helping young people to remain plugged into the labour market through government-funded paid internships, or even offering them loans to go for further studies and prevent a spell of unemployment.
For now, while some young jobseekers are taking a wait-and-see approach, the reality is hitting hard for others.
Final-year National University of Singapore student H.P. Tan had all but secured a job at a public relations firm last month, after three rounds of interviews.
The Faculty of Arts and Social Sciences undergraduate was rejected via an email from the agency, which said that they could no longer hire after Covid-19 started to drastically cut business.
“When I got that rejection, it was a turning point. I didn’t think I would be directly impacted,” said the 23-year-old.
“I also applied to a few other agencies but the response has been slow, so I am now freaking out at the possibility of not being able to find a job after graduation.”